EAST BAY TOWNSHIP — East Bay Township is moving forward with plans to transform its main commercial corridor, known as the East Bay Beach District, into a more walkable and community-oriented destination.
Officials are proposing a tax increment financing district that could generate roughly $6.5 million over 20 years toward a much larger, $46 million vision for the US-31 corridor.
Claire Karner, the township’s director of planning and zoning, said the effort grew out of two major federal grants, one from the USDA Rural Development program and another from the Coastal Management Program.
“This is a corridor, like many others throughout the county, that has chronically seen underinvestment in public infrastructure,” Karner said.
The district spans 781 acres and includes 1,635 parcels — 663 commercial properties and more than 1,000 residential units, roughly 87% of which are condominiums. The current taxable valuation stands at about $138.2 million.
The resulting action plan identified pedestrian safety as the top priority. Among the largest proposed projects are a pedestrian bridge or ADA crossing over US-31 near the Traverse City State Park, estimated at $6.75 million to $8 million, and the burial of overhead utility lines along 2.47 miles of corridor at an estimated cost of $20.5 million.
Other projects include a $1.75 million community pier and public water access point at the Four Mile Road end, $2.6 million in planted medians along US-31, $1.75 million in dark-sky-compliant pedestrian lighting, and $1.825 million to complete the sidewalk network on both sides of the highway.
Three specific redevelopment sites have also been identified through the community visioning process: the Four Mile Road end, which residents want to see developed as a recreational gateway with a boardwalk and kayak access; the O’Grady Parcel at 1818 US-31, envisioned as a mixed-use gathering space with food trucks and trail connections; and the Mitchell Creek Inn property, where residents have called for outdoor gathering areas and natural feature preservation.
To begin funding the work, the township settled on tax increment financing, or TIF, as the primary tool. Under the structure, current tax revenues flowing to the township would be capped at present levels, with any growth in tax revenue within the district directed into a dedicated fund.
Initial projections put first-year revenue at about $33,000, with the district assumed to grow at 2.5% the first year and 2% annually after that. Over the TIF’s 20-year life through 2045, cumulative captured revenue is projected at roughly $6.5 million — a fraction of the full $46 million project list, meaning the township would need to pursue additional funding through state and federal grants, brownfield financing, bonds and public-private partnerships.
Karner acknowledged concerns that TIF districts can divert tax revenue from other public services, calling those worries valid. But she said the tool represents an opportunity for regional cost-sharing to address long-neglected infrastructure needs that will benefit the broader community.
She also pushed back on the notion that corridor improvements primarily serve tourists.
“We had hundreds of people come out and engage. The vast majority were local residents,” Karner said, pointing to the TART Trail, local restaurants and parks along the corridor. “I think there’s a desire to take back that corridor to the locals and have it be more of a local destination.”
Dan Summers, who operates a market along the corridor, said he supports the plan.
“We could do some better sidewalks, particularly on the other side of the road,” Summers said. “More traffic breaks. Some improvements in the neighborhood in general would be nice.”
Summers said his business benefits significantly from foot traffic off the TART Trail, particularly when nearby hotels are full. He said planned improvements to traffic signals, including a new light at the state park entrance and retiming of existing lights, would be a major help for businesses that struggle with vehicle access during peak hours.
“It can be difficult to turn left out of here, especially in the morning when everyone’s going to work,” Summers said.
Asked about the township’s broader vision of creating a neighborhood feel along the corridor, Summers was cautiously optimistic.
“That neighborhood feel is good,” he said. “I think it’s going to be a difficult task with all the hotels in the area, and especially with how seasonal the neighborhood tends to be. But if they can pull it off, great.”
The township board is scheduled to hold a public hearing March 9 on the proposed development and TIF plan. If the board moves forward, the earliest the plan could be adopted is May. Township officials have also been presenting to taxing jurisdictions that would be affected, including the county board of commissioners and the Grand Traverse County Road Commission.
Karner said the township wants to hear from residents about whether any projects are missing from the plan and how they would prioritize the proposed improvements.
“We’ve identified projects that we’d like to tackle over the next 20 years,” Karner said. “What are some of the low-hanging fruit that we can tackle over the next one to three years? And then what are some of the larger projects that we need to plan for in the next 10 to 15 years?”
The long-term vision, she said, is a commercial district that functions as a walkable destination — accessible by foot, bus and bike — with a stronger sense of identity.